Running a tow truck business isn’t an easy nut to crack, or neither it’s a cheap alternative that you think. If you’re thinking of starting a tow truck company, you need to be prepared to list the cost and expenditure you’re going to face while doing business.
After all, it’s better to get to know about the things that you’ll need to pay rather than being unprepared. So, to help you give an overview of some of the tow truck business expenses, we’ve come up with the list that you’ll need to plan for.
But before listing those expenses, let’s shed some light over a few factors that contribute to estimating the cost to run a tow truck business. So, let’s get started.
What you’ll learn:
- Why would I need to be towed?
- What Services Do Car Towing Companies Offer To Their Customers?
- What Factors Contribute to Estimating the Towing Cost of Your Vehicle?
- What Expenses A Tow Trucking Company/Owner May Face?
- How Much Does It Cost to Hire A Tow Truck Service?
- Some FAQ Regarding Tow Truck Cost
Why would I need to be towed?
Generally, cars are towed because they are unable to get going from one place to another. They might be stuck roadside or due to an accident, tire rupture, or something broken with the car that causes it to be undrivable. The vehicles might not start, or you may have one or more tire depletions. Also, you could have been trouble with you:
If your car battery is low, getting it jumpstarted will get the battery enough power to drive to another location. But if your battery is dead, it requires a tow truck.
What Services Do Car Towing Companies Offer To Their Customers?
The direct towing app professionals can assist in towing disabled vehicles to your chosen destination or a local repair company. Be it towing a car, truck, SUV, or anything; we are here to assist you.
The services that we provide includes:
- Emergency Towing and Roadside Assistance
- Flat Tire Changing
- Gas Services
- Fuel Delivery
- Accident Assistance
- Transport a broken car
- Pull out a stuck car
What Factors Contribute to Estimating the Towing Cost of Your Vehicle?
Before sending you an estimate to tow your vehicle, the tow truck service companies will consider the following factors in your towing rates:
- How large is the car that needs to be towed?
- How far they must pull the truck
- How difficult is your vehicle to get it towed (if its in a muddy region or on a steep slope)
- The Day times
The tow truck companies usually charge minimum rates to cover their business costs, such as gas and maintenance charges. The minimum rate of around $50-70 usually includes a towing distance to 7-10 miles.
Generally, each company charges different minimum mileage rates, so it’s better to speak with your local company when you ask them to collaborate.
2. Vehicle Size
Your vehicle size, which needs to be towed, can also affect the towing price. A standard towing fee includes 4-door sedan cars. But often, big trucks and SUV’s comes under additional charges. Each company has its standards. So, it’s better to check with your local company to be accurate. Typically, the extra cost may range between $10-$40.
3. Time of Day
Another factor to consider is towing costs time of the day. If it’s in the day time, the charges are normal. After-hours towing typically starts at 8-9 PM and generally ends around 6-7 AM. Each company’s after-hours services charges vary. Some companies charge as small as $10, while others may charge up to $50 one-time fee.
What Expenses A Tow Trucking Company/Owner May Face?
Below is the list of the expenses that a tow truck owner may face:
Getting your tow truck insurance is highly important to avoid unforeseeable circumstances. Your tow truck insurance rates depend upon multiple factors such as your location, tow radius, loss history, accidents, and so on. One of the best ways to confirm the cost is to get the best quote from the general insurance companies.2
Yes, gas/petrol is highly expensive. And since the towing business involves multiple road trips, you ought to burn more fuel. So, don’t underestimate the fuel cost to keep your trucks full – It will consume almost 30% of your overall budget.
3. Driver’s uniform
Though it might sound an unnecessary expense, it’s essential. Getting your drivers a proper uniform helps them look more professional when they meet your clients. Uniforms can help your drivers to create a first good impression in front of your customers.
4. Tow truck Maintenance
It is also important to maintain your tow trucks properly. The more you take care of your trucks, the safer would be your vehicles. There’s less chance of your truck’s problems since everything is caught before and resolved while the truck was sent for a check-up. If any issues are found, expenses would be less since you’ve maintained your vehicle. Getting your vehicle maintained is like going to the doctor for a regular check-up.
Of course, Tow trucks do need repairs. You need to make sure that you’re able to take care of those on-spot issues and get it repaired with the mechanic. But these are not the only expenses in the business. Understand what it will cost to keep the tow truck business running and then set your rates to better livelihood from towing.
6. Driver’s pay check
It’s quite obvious that you need to pay for your drivers. So, make sure to build a full-proof plan that gets your drivers insured and pay their cheques on time.
How Much Does It Cost to Hire A Tow Truck Service?
To cost to hire a tow truck service depends on how far you want your vehicle to be towed. But the average cost to tow a vehicle can be around $100. The price depends upon the location and car type, so on a broader scale, towing can cost you somewhere about $50-$150.
As per the current standards, the following are the common average prices based on the distance:
5 miles or less: $50 – $150
40 miles: $120 – $250
However, the cost to tow a car may fluctuate if you need your car to be towed after-hours, on a weekend or a holiday. The same is true if the terrain is muddy, hilly, or narrow. Also, keep in mind that the cost to tow a broken car is far less than towing a car due to damage or accident.
Some FAQ Regarding Tow Truck Cost
1. Will my car insurance company cover roadside assistant cost?
Well, your car insurance company may include roadside assistant or towing costs. Each company is different, so it’s better to get it checked with your company whether such a service is available or not.
2. How much does towing cost per day?
If you get your vehicle towed, the impound lot’s storage fees range between $50 to $100. Based on your city, the charges may vary.
3. Does my tow trucking business need insurance?
Yes, it is advisable to get your tow trucks insured to avoid sudden expenses and unfortunate circumstances.